fbpx

Are you buying a lemon?

Published on December 4th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors



Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

Nonetheless, engine problems seem to be next in line, accounting for 15 percent of the total claims. The lengthy list of dissatisfactions is linked to interior blemishes, odometer fraud, faulty batteries and so on and so forth.

Choice survey aims at helping Australian car owners

study conducted by Choice was meant to pinpoint where each car brand stands, and highlight the problems they are mostly associated with. That is supposed to come in handy for new-car buyers. Whereas it’s true that the greater part of reported issues were overall minor, nearly 14 percent of new-car owners dealt with major problems, which prevented their vehicles from functioning properly. According to the survey, Holden holds the reign when it comes to complaints – 68 percent of owners have reported a malfunction, being high above Audi and Ford.

Even Toyota, which is acknowledged as a high-quality, reliable brand in Australia caused problems in 50 percent of the cases. Mazda, apparently, holds a good spot in the survey, being rated at 44 percent. As opposed to the studies conducted in the U.S., the one carried out by Choice is relevant for the Australian consumer body.

A primary concern is that owners are frequently required to sign confidentiality agreements, in case their new cars are in need of repairing. On that account, the research specifically illustrates that car companies are eager to cover up the scale of problems associated with the cars they produce. For that reason, they enforce customers to sign nondisclosure agreements, which put them in an awkward position.

It’s crystal clear that such a practice is, by all means, unacceptable, especially as we’re talking about significant purchases, such as vehicles. Not to mention that many of the problems were connected to vehicle safety.

Federal Chamber of Automotive Industries argues study findings

However, the Federal Chamber of Automotive Industries that officially represents car companies disputes the claims. They affirm that new-car owners in Australia benefit from long warranties, in comparison with other countries in the world. It appears that the growing competition in the vehicle market implies that the FCAI members’ primary objective is to offer support. In the same respect, they claim that these kinds of surveys are, by all means, inconsistent, unless the research determines the cause.

Nonetheless, Choice reports that 15 percent of the people who encountered problems with their newly-bought vehicles were unable to solve them. It would seem that some companies aim at solving consumer problems, as opposed to others.

Brand and percentage with problems

Did you find this page helpful?

Yes
No
Thanks for your feedback!

This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for car loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Looking for a car loan quote?

Compare over 40 lenders with Savvy and save on your next car purchase.

* Terms and conditions and lending criteria apply.

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Related articles

Looking for a car loan?

Explore a range of car finance options with Savvy and get the wheels in motion today.